Allowed

Punjab National Bank v. Sh. Patel Singh

DRT27 Aug 2024OA/1258/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Punjab National Bank for recovery of dues of Rs 63.26 lacs. The Court declared the defendants liable to pay the principal amount along with uniform simple interest at 8% per annum from the date of filing. Recovery proceedings may be initiated against mortgaged or personal assets.

What did the court decide?

Recovery Certificate issued declaring defendants liable to pay Rs 63,26,713 with simple interest at 8% p.a. from filing date. Enforcement allowed via sale of mortgaged or personal assets.

Punjab National Bank versus Sh. Patel Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1258/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.07.2022

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DATE OF DECISION: 27.08.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at Sherpur Road, Jagraon through General Power of Attorney Holder Sh. Ravinder Kumar, Senior Manager and Constituted Attorney.

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……..Applicant Versus 1. Sh. Patel Singh S/o Sh. Kartar Singh, R/o H.No.202, VPO Sherpur Kalan, Tehsil Jagraon, District Ludhiana, Punjab. (Borrower/Mortgagor) 2. Sh. Gurmeet Singh S/o Sh. Patel Singh, R/o H.No.34, VPO Sherpur Kalan, Tehsil Jagraon, District Ludhiana, Punjab. (Co-Borrower) 3. Sh. Gurdeep Singh S/o Sh. Lal Singh, R/o VPO Sherpur Kalan, Tehsil Jagraon, District Ludhiana, Punjab. (Guarantor) ….……Defendants Advocates: Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.63,26,713.00 (Rupees Sixty Three Lacs Twenty Six Thousand Seven Hundred and Thirteen only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant Nos. 1 and 2 had approached the applicant bank for the grant of CC Limit (OGC Limit) of Rs.30.00 Lacs vide Loan Application Form dated 03.01.2014, which is Annexure A2 to this OA. Defendant No.3 stood as Guarantor.

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The applicant Bank sanctioned the OGC Limit of Rs.30.00 Lacs vide Sanction Letter dated 03.01.2014, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant No.1 had mortgaged his immovable property i.e. total land measuring 25 Kanal 04 Marla situated at Village Sherpur Kalan Tehsil Jagraon, District Ludhiana, Punjab vide Registered Mortgage deed bearing Vasika No.4236 dated 02.01.2014 along with its translation, which are Annexures A7 & A7/T to this OA. Documents executed:- Identity Proof of defendants in file 3, which is Annexure A3 to this OA; Hypothecation Agreement and Agreement of Guarantee both dated 21.01.2014, which are Annexures A5 and A6 to this OA; Affidavit dated 09.01.2014, which is Annexure A8 to this OA; Copy Balance and confirmation letters dated 30.11.2016 & 03.07.2019, which are Annexures A9 & A10 to this OA; Copy of Recall letters dated 22.08.2018 and 04.10.2018, which are Annexures A11 & A12 to this OA; Copy of Legal Notices dated 21.12.2018 & 14.04.2019 along with postal receipts which are Annexures A13 & A14 to this OA and Statement of account along with Certificate, which is Annexure A15 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.63,26,713.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant and they were proceeded ex-parte on 19.07.2024.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.63,26,713.00 (Rupees Sixty Three Lacs Twenty Six Thousand Seven Hundred and Thirteen only) along with interest from the defendants from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.50%p.a. along with penal interest @2%p.a. with half yearly rests from 01.04.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.63,26,713.00 (Rupees Sixty Three Lacs Twenty Six Thousand Seven Hundred and Thirteen only) with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.09.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 27.08.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Patel Singh

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Punjab National Bank v. Sh. Patel Singh

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